The Ramsey Show - App - It's Always Appropriate To Ask for a Raise If You're Worth It! (Hour 1)

Episode Date: June 9, 2021

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Music Music Music Music Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Open phones here at 888-825-5225. My co-host today, Christy Wright, number one best-selling author of the book Business Boutique,

Ramsey Personality, and host of the Christy Wright Podcast. And lots of stuff to talk about today. Christy just did a talk at the summit, the Entree Leadership Summit in Dallas that we had a couple of weeks ago, and it was one of the most highly rated talks among all the speakers that spoke that week, and there were world-renowned communicators on that stage. She was up against some tough competition to get one of the top ratings, for sure. Earned my spot there. Earned my place.

For sure. But the reason for the ratings was not only the great delivery and your speaking style and ability but the content she was talking about balance and i get the call life balance matter of fact i spoke to a company yesterday local company just a friend of mine i ran by there and just did a you know one of their talks for him yep and i did a little bit of q a after and one of the young guys was saying hey i got babies and i knew little babies and i just started a business how do i balance i mean it's a question you and i have gotten for a couple decades yes how do you balance how do you balance people call in here going okay i want to get out of debt and i know gazelle intensity means work like no one else i mean i know there's a great place to go when you're broke to work i know

i know all of that but but i've got the kids and I'd like for them to actually know that they have a father or a mother. And how do I balance? How do I balance? How do I balance? How do I balance? And, you know, we teach people to be intentional with their money. And the essence of what you told this group of leaders that was so popular was to be intentional with your time. Yeah. Yeah. Well, I think there's such a direct correlation between time and money. And it's not just the obvious of you work and you make money, but I think when you start to realize that time is one of our finite resources, our most finite resource, even more finite than money, you can go get more money, you can't get more time, then it gives

you a little bit of a fire under you to want to steward it well, be intentional with it. And to your point, Dave, when we get asked this question, we're always asked in the same way. Balance is always used as a verb. How do I balance it all? How do I balance everything? Like we've got juggling balls, spinning plates, walking a tightrope. It's always these analogies that feel very stressful and full of anxiety.

And so as I dug into researching this more and more over the past six to 10 years, I started asking a different question. What if balance is not so much something you do as it is something you create in your life, a sense of peace and confidence in the way that you spend your time? And it leads you to a different answer

when you think about balance as something you feel and create than just something you do. It gives you permission to be gazelle intense when you're paying off your debt because that's the right thing at that time. And to put your phone away when you're on vacation and focus on your kids because that's the right thing at the right time. And so it's amazing how it really did hit a nerve. And I think it's because our world is crazy busy and we've got a phone in our pocket screaming our name 24-7. So we've got to have some strategies to create a sense of balance even when we live in a world that's very out of balance. If you don't take a step back and take a big gulp of air, there is never enough money and there's never enough time. That's right.

And the only way that there's a sense of contentment with either one of those subjects, and they're interrelated that way because Jesus said your treasure is where your heart is. So how you spend your time, how you spend your money, it says what's important to you. Yeah, and you always say that. I can tell by looking at your bank account and your calendar what you care about because that's where you spend your time and that's where you spend your money. And I would say a lot of people experience tension and stress and frustration because they don't, because they spend their time and money on things that are not important to them,

and they feel this frustration. And so I love to help people bridge that gap to where they're spending their time on what matters. In a sense, what you've been saying with balance is what we've been saying with budget. And it's like when you tell your money what to do, on paper, on purpose, before the month begins, you'll do a budget, and you're making the money go where you want what to do. On paper, on purpose, before the month begins, you'll do a budget. And you're making the money go where you want it to go. You feel like you got a raise. Yes.

When you tell your time what to do, you're going to find margin. Yes. And you're going to feel more. Because you're going to say, I'm not doing that. Right. And you're going to feel more in control because guess what? You are. You are in control of your time and your schedule and your calendar. You

set it. Just like you set the budget, you get to make it look like what you want to, but a lot of people are passive and reactive, similar to their money. I love to help them. You help people with the budget. I love to help people take control of their time to actually spend their time on what matters most to them. Then what's really cool is you can still be crazy busy, but you feel that sense of balance because you're no longer trying to do everything. You're doing the right things. And that's where that feeling comes from. Yeah. And you're present wherever you are. I mean, it's one of your principles is to be where you is. Yeah. And, you know, we talk about social media and we talk about all the distractions. But what's interesting is I discovered a study, and these

are by two Harvard psychologists, that cited that the more present you are, whether that's not looking at your phone or not even allowing your thoughts to wander to all the things you've got to do, when you can truly be where your feet are, research shows you are happier overall, regardless of what you're doing. It doesn't matter if you're doing something that's not as fun. When you're present in the moment, it leads to more happiness. And so I love to help people figure out what that looks like in their life and put in habits. Because even if you create the most perfect schedule in the world, if you're not present for it, you miss it. So you have to figure out

how to be present so you can actually experience your life. Yeah, so the morning run, I did a three mile run this morning. It's a really good idea to just enjoy the run yeah and not be thinking about the day and thinking about which i did all morning while i was running i did i did exactly wrong all i did was think about i'm gonna have to go and i'm gonna fix that today and that's right there and that guy i'm gonna get i'm gonna all through your brain you have your best ideas on a run, right? Yeah, but you can't, and it was, you know, it was a beautiful Tennessee morning. And, you know, I look back in a sense,

I'm chatting myself, but I think what we all do is by not being there, I missed it because I was already here. We do that, Dave. You know, this is a silly example, but last year when Matt and I went on vacation to Fort Lauderdale, we just had a little getaway for a weekend. The weather forecast was really bad. It was a bad example, but last year when Matt and I went on vacation to Fort Lauderdale, we just had a little getaway for a weekend.

The weather forecast was really bad. It was a bad forecast. It was going to rain and thunderstorm. And I'm just like obsessed about us having a good weekend. And we're driving down the main boulevard on the beach in Fort Lauderdale. Oh, you're a weather girl. Not as bad as Rachel. Not near as bad as Rachel.

Nobody's as bad as Rachel. Rachel should have been a meteorologist. But I wanted beach days. I wanted good weather. We're driving down the street by the beach right there in Fort Lauderdale. And the top is down on the convertible. The weather is fine. I'm looking at the app on my phone.

And I am just obsessively looking at the hourly and the daily forecast. And I felt God say, look up. Look at the weather right in front of you. It's fine. You're obsessing about what's coming. Look at what's going on right now. And I thought, gosh, don't we all do that? I have to tell all three girls in our family very regularly that a 40% chance of rain means a 60% chance of sunshine.

Jeez, man, the glass is half full. Come on. Okay, so if you want to know more about this, Christy's got a tool to help you. Take the challenge to get 24 hours added to your week. We're going to show you how to do it. And it goes with the money piece. Text TIMEFINDER to 33444. Text TIMEFINDER to 33444.

And we'll send you a free tool that Christy says is going to add 24 hours to your week. It's kind of like getting a raise when you do a budget. Same thing. When you start doing stuff on purpose, you immediately carve out the superfluous garbage out of your life. This is The Ramsey Show. home, your marriage, and your growing family. While you're enjoying the present, you can't help but think about your future and your finances. As you explore your options, consider Christian Healthcare Ministries, or CHM, for your health care. Their generous maternity program and budget friendly monthly programs have been a blessing to members welcoming children into their families. Visit chministries.org slash budget to see if it's right for you. That's chministries.org slash budget.

Christy Wright, Ramsey personality, number one best-selling author, is my co-host today. This is The Ramsey Show, where we talk about your life, your money, and your life. We're talking a little bit about life balance coming out of that segment. And any of you have any questions about that subject, you can jump in here on the air as well. Kelly will put you on. The phone number triple eight eight two five five two two five uh gabriel is with us in los angeles hi gabriel how are you hi christy hi dave how you guys doing great man what's up hey so i have a question for you dave um so i have i'm on baby step two right now um i have about 12 000 in my savings and right now at the moment, I know I got to pay off

all my debt and I have two car payments. One of the cars doesn't work though. The engine went out, so it's going to cost me thousands of dollars to fix it. So my question is, I know I heard you, might've been a couple of weeks back saying that a zero credit score is fine if you have cash, because all your debt's paid off. So my question was, do I let this car go that doesn't work and let them take it, even though it's going to mess with my credit, or do I pay it off? That's my question. Okay.

So what do you owe on the car that works? The car that works, I still owe a lot. I still owe about $24,000. What do you make? I make $40,000 a year. Okay. Have you got that car for sale yet? The one that doesn't work?

The one that does work. You can't afford it? No. Okay. No. So what do you got, like a $600 600 car payment right uh it's 490 yeah okay and and you make 40k this is a car you can't afford this is what's killing you so the car that doesn't work what do you owe on it i owe about 10 what is it it's a honda tucson what year uh 15 and the engine blew

yes um it's kind of a long story i don't i mean well i'm just trying to ascertain what to do is the the you said the engine's bad. What does that mean? I mean, you dropped a rod. It's a complete meltdown. Or it has to have a new engine, or it just needs heads put on it? I mean, what's the situation? No, it needs a new engine. Okay.

All right. So that car fixed is probably worth $12,000, isn't it? Yeah. Okay. That's my guess. I'm not too sure. It's probably worth at least what you owe on it. And the one that you owe $24,000 on, what do you think it's worth?

I don't know. I'd say maybe like 15. How old are you? I'm 32. You have family in the area? Yeah. I'm actually married with three kids and a fourth on the way. Like your parents are around, your uncles or aunts are around,

or anything like that? Yeah. Yeah, they're all around. Okay. Here's what I would tell you today, all right? You're going to use some of the $12,000 to get a used engine from a salvage yard, a junkyard, that a local mechanic, not a dealer, puts in this car. You can do that for two to three thousand dollars

you're going to fix that car because if you turn it in right now it's worth a thousand dollars they're going to sue you for the other nine thousand dollars and you're going to have a repo that is not a plan not when you can spend a little bit of your cash fix the car and then we're either going to drive that car or we're going to sell it because we're selling the other one you don't need a 24 000 car when you make 40 a year right that's that's broke people stuff right there so we got to get rid of that and you may have to use some of your 12 000,000 to get rid of that $24,000 car because you're probably upside down on it. Right. So if you write a check for $2,000 or $3,000 and get out of that car and a check for $2,000 or $3,000 and get out of the other car,

you've still got $6,000 left in your savings account. And you're either going to use that to go buy a car for cash to drive, or you're going to drive the $10,000 car and start working your way to paying it off. Right. After you put a used engine in it. So here's the deal. Somebody totaled a car just like that, and the car they totaled only had 20,000 miles on it, and so the engine that's sitting in that totaled car in that salvage yard is a perfectly good engine.

And it is the cheapest way to put an engine in a used car. A used engine in a used car. And you can do that in the Los Angeles area. The reason I was asking about family in the area is my advice is kind of old school redneck advice. advice and i was hoping one of your your daddy or your uncle or somebody actually had turned a wrench at some point in their life and would know how to pull off what i'm talking about with a good local mechanic i'm not suggesting they actually do the engine change out but the point is that somebody can get their head around this because dude if you just walk away from this you're gonna get sued for nine thousand dollars you're still gonna be sitting on a twenty four thousand dollar car you can't afford right Right. That's not a plan.

That's five years from today. You're going to look back and go, both of those things were dumb. And if you fix this in the next four or five months, the way I'm talking about, you would have no car payments or very little car payment. Gabriel, I hope you really do it. You sound a little sleepy to me. I hope you really do it. You've got a baby on the way, a fourth baby, by the way. I hope you really do it. You sound a little sleepy to me. I hope you really do it. You've got a baby on the way, a fourth baby, by the way.

I hope you really do it. Get yourself out of this mess. Yeah. The problem is, you know, Larry Burkett used to say, and he was a guy in the Christian world that taught on money. He said, whatever time it takes you to get into a mess, it usually takes you about the takes you to get into a mess it usually takes you about the same time to get out and i have learned that it did to disagree with that it

usually does take you about half the time okay so if it took you three years to make the mess it might take you a year and a half to get out okay but it usually doesn't take you three years to get out and in his case he's either going to continue making messes by being half asleep and turning this car in and continuing to try to drive a $24,000 car he can't afford because he's sleep deprived with a house full of kids. I don't know. out and step into this thing and go, I'm going to go into a short-term intense amount of inconvenience and pain to limit my long-term damage. Well, it's like you always talk about. You can wander into debt. You cannot wander out.

People get into a mess gradually, incrementally, by degrees, accidentally. No one, few people, go headlong into it like, i really want to mess my life no one looks at something and goes that's really stupid i'm gonna do it anyway i can't wait to do it i can't wait to know unless they're doing drugs i mean you know no one just does it right no it's gradual and so it takes you three years of gradual missteps and then you look or it is a really dumb idea but you just thought it was smart sure at least you thought it was smart you know i mean i've done a lot of stuff and i've been an enthusiastic ignoramus several times right same sure uh but then when you get when you decide what you're going to do to fix it you get an intensity about you that lessens the time it takes to get

out that's what you talk about with the gazelle intensity that's what you talk about with the you know year and a half versus three years you have an intensity and a drive and and a fire under you to fix it well like it's like you know we're talking about running this morning, but you're a big-time runner, and you've done a lot more half marathons or marathons than I've done. But it's amazing to me that you can run 12 1⁄2 miles over, for me, that's a two-hour arrangement, right? And I'm turning the corner, and after running, jogging, whatever, for two and a half hours, or for two hours and ten minutes or five minutes or whatever, I turn the corner, and I can still sprint. Yeah, yeah. In my mind, it's sprinting.

But, I mean, at least I can run fast. You know, I've still got something left in the tank because I can see the finish line. That's right. That's right. And you go, I'm going to shave just a few more seconds off of this deal, and I'm going to bust that line right there, and I'm going to bust into it. I'm not going to stop and walk across the line. Yeah.

You see people with this paying off their debt. They actually end up doing it quicker than they thought their goal because they get that intensity at the end. That last six months because they start to believe. That's right months, because they start to believe, they kick it in. And there's something that goes with that. It's pretty powerful, you guys. So, hey, personal finance is 80% behavior. It's only 20% ad knowledge.

Most people know what to do. But for 30 years, we've been convincing them to do it around here. It's called The Ramsey Solutions, Will and Samantha are with us. Hey, guys, what's up? How you doing, sir? On the debt-free stage. It must mean one thing and one thing only, you're debt-free. How much did you pay off?

We paid off $62,800. Good for you. Awesome. How long did this take? About 12 months. Good. And your range of income during that time? $1,800. Good for you. Awesome. And how long did this take? About 12 months. Good. And your range of income during that time?

We started at $100,000 and we ended up about $105,000. Cool. What do you all do for a living? I'm a teacher, but during our debt-free time, I actually took a job as a tutor during the summer, so I was still able to work 40 hours a week. Cool. I also picked up a job during the holidays at a department store able to work 40 hours a week and then I also picked up a job during the holidays at a department store so we could be done in a year. Hustle hustle. Yeah she worked about four jobs. Hustle and grind I love it. What kind of debt was the $63,000?

Student loan debt. All of it? All of it. And where do you guys live? Louisville, Kentucky. Okay and how long have you guys been married? November of 19. So about a year and a half, a little over a year and a half. Intense first year and a half of marriage working on this. That's awesome. Yeah. So you said you're a teacher and what do you do, Will? I work for a community bank up in Louisville. Okay, great. Very cool. So what happened a year ago? What got you fired up to do this? Well, I grew up listening to Dave. My dad's a CPA. I remember we'd be leaving church, and Dave Ramsey would be playing on Sunday in the car.

There you go. A little shake-up sermon. I said, we'd be backing out, and there's some redneck from Antioch, Tennessee that's on the radio leaving. He was. He was obsessed for a long time. And before we got married he was like we're gonna do the dave ramsey and i was like no we are not i love money and um so a couple years ago i actually had um i have type 1 diabetes and so i had an incident where i was out of work for

a couple weeks um a stomach bug that just didn't turn out too well and we just talked about it and we didn't want to be in a situation where we couldn't afford the debt because I couldn't work or something. And I don't want to put Will in that situation also. So that's when I kind of jumped on board, too. Yeah. It gives you a different level of motivation when you think of it through that lens. Oh, no, definitely. Now, I mean, if that were to happen now, it wouldn't really even be a big deal.

Right. Like, it'd stink because you'd be in the hospital. But outside of that, you know, we could write a check for it. The money part would be a problem. That's right. You could focus on healing, focus on getting the care that, we could write a check for it. The money part would be a problem. That's right. You could focus on healing, focus on getting the care that you need and not worry about the bills. Yeah, that's good.

So 12 months ago, you made that decision for that reason, and then what did you do? Did you all jump through financial peace, or what did you do? Yeah, we got into financial peace through our church, Southeast. Okay. Went out there with Pete. I remember the toughest moment was when we made that first payment. We put all of our wedding money towards it, and we went down to $1,000 in our savings account. It was really, really tough because she was crying. That was just rough, being a newly married guy and laying next to your bride who's crying because of that.

You know, that was just really rough. That kind of lit a fire underneath both of us to get it done with and just put everything towards it. Yeah. I cried a lot. Yeah. What was the reason for that cry? I was more frustrated in myself. So I have two different degrees. And so I was really frustrated in the first part of not looking at student loans differently because we just weren't taught.

So it was a I feel guilty cry. Oh, definitely. Because he came in the marriage with no debt. And I was like, we're a little bit in debt because of me. And so that's really why I took on so many jobs. And he was like, let me deliver pizza. And I was like, no, it's my dad. So he was being so nice towards it. She wouldn't let me work another job.

Wow. So, yeah, that's a – but at least you're processing it at that moment when you put that wedding money out there. And we're doing this together. We're locking arms. We're going to do this. And it sucks, but we're doing it. And that locking arms we're going to do this and it sucks but we're doing it and that's kind of that's kind of what it was i was so frustrated we uh listed all the debt because you know it was a nail net we listed all the different loans out and when i

listed them out i was just like dadgummit that's just we're not gonna say yeah just kind of get mad yeah and you did it in 12 months yeah i did you sell stuff? How much did you have in savings? I think we put about 10 was the first payment. So you cash flowed 50 grand. Yeah. Well, I mean, they were all principal payments. COVID was the best thing that ever happened to us. Yeah.

There's no interest accruing on them. Everything was principal payment from about, I don't know, when they started doing that craziness. May or June. Yeah, May or June on. Which then we just really looked at each other and hunkered down. I was like, they're not accruing any interest. Everything's a principal payment. We just need to pay these off as fast as possible. That's good.

But still on that income, that's impressive. Y'all paid that off in 12 months on that income. You went down to Beans and Rice. You did. Yes. Lots of leftovers. I told people we would go to Sam's club and buy the huge things of meat and we would literally eat on it all week because it was the cheapest thing you could buy and so that's really what we did sharon used to get that dead gum frozen chicken bags of those breasts of chicken yeah at sam's or costco yeah and and i i hate that

because we would eat it so much i I haven't heard you talk about that. I've heard you talk about the tuna fish. To this day. The tuna fish was really broke. This was a little bit later, but she's still a tightwad. That's the problem. She is.

Buy a filet mignon. Good Lord. Bring me the cheaper chicken. Y'all are going to be ruined from that Costco meat now. I know, right? Yeah. We are.

That's all right. That's all right. We did it. That's all that matters. One guy i heard one time he said i want to get wealthy enough where i read the menu from the left to the right yep yeah instead of starting with the prices on the menu and figuring out what i'm gonna eat i'm gonna figure out what i want to eat because the price doesn't matter yeah that's a good that's

a good place to work for baby step seven yeah good for you Well done. How's it feel now that you did it? Oh, it feels great. Amazing. Tears of joy? Yeah. There you go. Trust me. On December 31st, I was crying again, and I was like, I can't believe we did it. Oh, wow.

Because I just- Was that when you hit the submit button on the last one? Yeah. New Year's Eve! Yeah. Woo! Because that's why I got the job at Macy's, because I told him, I was like, we are so close.

If I can just get this department job, we're not going to wake up on January 1st with a payment. And so that's really. You started this year debt free. Yes. You can see the finish line you're sprinting into. We were just talking about that. Wow. That is so cool.

Will, how excited were your parents? Oh, they were super. Oh, everyone. We had a bunch of, my uncle and I had a race. He could pay his farm off. And us, if we could pay our debt off first. That's awesome. He beat us by a couple of days.

Okay. He did. But man, yeah, it was, no, everyone was super proud of us. Yeah, nobody lost that race. Yeah. No, we didn't. No, and he didn't either. But yeah, it was, everyone was super proud of us.

You know, we're just really thankful because my parents you know you were you're about same age as them um they lived they modeled that for me growing up you know my dad just bought himself his first new car you know yeah and he's an everyday millionaire now oh yeah i don't know you know we've talked about that stuff but yeah yeah but he is yeah we. You and I both know he is. Yeah, he is. He's listening in, so he'll be excited you said that. Well, I mean, if he's not, he really did a bad job of listening all these years.

Yeah, somehow. He didn't retain it. Well, he probably couldn't hear over three boys fighting in the back of the van. It's interesting, the three boys fighting. The Financial Peace Babies are showing up these days. They are. On the debt-free stage. It's interesting. The three boys, the financial peace babies are showing up these days on the debt-free stage. And how old are you two? 28.

All right. I'm so proud of y'all. She's 20 on Friday. Yeah. Well, happy birthday. Thank you. Well done. Well done.

And you did all this before you're 30 and you got the whole rest of your life to do it smart. So very, very good. Tears of joy followed from tears of shame. I understand. I've had both myself from tears of shame. I understand.

I've had both myself. Very well done. All right. It's Will and Samantha. We got a copy of the Legacy Journey book because that's the next stage in your life is to move on now and build a full-on legacy. Really continue the legacy your dad started, in a sense. Very well done. And a copy of the Total Money Makeover so you can pay it forward by giving that to somebody who needs their wake-up call.

So, good stuff. Very good stuff. Will and Samantha, Louisville, Kentucky, $63,000 paid off in 12 months, making $100,000 to $105,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! We're debt-free!

Yeah! This is how it's done. That is so fun. So well done, you two. That's awesome. So well done. That last sprint took the job in Christmas. You turn the corner.

That's right. And you see that last bit, and you can see the yellow tape. You can see you're going to make it, and you bust into it. And even if it's Macy's, you bust into it. This is the Ramsey Show. Thank you. Christy Wright Ramsey personality is my co-host today. Open phones at 888-8252-5. You can take the challenge to get back 24 hours in your week if you text TIMEFINDER to 33444. That's an item Christy has put together to help you find some time.

TIMEFINDER to 33444. We were talking earlier in the hour about balance and life balance and applying your time like you apply your money to the things that matter most to you. Kevin is in Buffalo, New York. Hey, Kevin, how are you? Good. How are you? Better than I deserve. What's up? Good. So I just got a question about life insurance.

So before I really listen to you, so I'm an electrician by trade, and I work quite a bit. I'm only 23 years old. I work and I also have some family friends who do a lot of property management. So I work on the side for them as well. So like I said, so I'm 23. Currently I'm making about $1,700 to $1,800 a week after taxes, including the part-time side jobs. Um, so my life insurance policy, I got two years ago before I listened to you is whole life. Um, it's a $13,000 a year premium, but it's a 20 pay $1 million death benefit covers long-term care. Um, and obviously has a cash value.

But then when I started hearing you say to go term instead and invest the difference, it's now in my head about what I should do. So I don't know what I should do. Should I sell the policy? Okay. Well, number one, you're 23. You don't need to worry about long-term care insurance. That's asinine.

Okay. That they sold a 23-year-old a long-term care insurance policy. Absolutely asinine. But that's what these people do. And so the second thing is this. $13,000 for a million dollars on a 23 year old did i get that right yeah um but i guess have you priced term insurance on a 23 year old no i have but like the only reason i like it is no no no no i wasn't asking why you like it i said have you priced

a million dollars on a 23 yearyear-old term life insurance with Zander Insurance? They're like $30, $40 a month. Yeah. Nothing. Yeah, like $300, $400 a year. Yeah. Yeah. Okay, which means that $12,000, almost $13,000 is going into a savings account inside that policy.

Did you notice how much your savings account, your cash value buildup is for the first year? Did you notice that it was zero? Yes. Do you not feel screwed? Because you were. That's why I'm saying. Well, I'm serious. You put $12,600 in a savings account, and the balance is zero.

This is bad math. This is bad math. And you're going to do it again next year? Please don't tell me there's any reason in your brain that thinks this is a good idea. No, I mean... No, get rid of this crap. Are you married? Today. No, I no i'm single uh we'll just cancel it today okay today if you want to get some insurance you don't need a million dollars on

you to start with because you don't you're not leaving anybody behind that's gonna not eat because you don't do electrician stuff you know you know you might need a little bit to bury you so your mom and dad don't have to pay for it do you have a bunch of debt zero good how much money you have in savings um well i started working at 19 i have 195 000 in a mutual fund good for you i think your parents will be able to bury you you don't okay you Okay. You don't need life insurance, son, at all. Okay. At all. Okay.

And now when you're married and have a couple kids and your wife is counting on you to make $90,000 a year to feed her and those kids, yeah, now maybe we'll pick up a million dollars at that point and buy you a 15- or a 20-year level term policy for $300 or $400 a year. In the meantime, I just made you $12,600 a year. And I'm a magician that way. I'm that guy. I just made up $12,000. I just pulled it out of the air and handed it to you. And you paid how much for this?

Nothing, because this show is free. Oh, my gosh. Just like that. Just like that. 30 seconds. seconds i think now now that savings crap is going to grow even more so a cash value policy in its first three years has cash value build up of zero sometimes in the third year it'll build up a little bit in the first two years it's always zero and i knew his was zero because he's in the first year and here's the bad part some duber that he went to high school with went and got

his license and went and sold all his friends yep yep and he brought his boss over to sell him yep and so he got in the door some duber that's gotten the door on relationship and brought the big boss in who put the arm twist on him and convinced him that this was a good idea he needed a million dollars at 23 with no kids yeah for what and this is a great and of course we're gonna get we're gonna put long-term care insurance on there too yeah because that matters when you're 23 yeah nursing home care is a big deal when you're 23 jeez so don't we listen i totally believe in long-term care insurance never buy it with another policy do Do not bundle it with anything. They're bundling it with everything out there trying to make it work, and it's not working.

Don't do it. You always buy your long-term care insurance after you're 60 years old. That was going to be my question. What age? Not 23. Okay. Yeah. 62.

Ouch. Austin. In Austin. I can't believe I did that. What's up, man? How are you? I'm doing well. How are you are you doing good how can we help uh well i'll give you a quick background i'm 26 my wife is 22 and we just had our first baby this past march congratulations thanks for a little

yeah you are um so i'm currently working two jobs. I'm working a full-time entry-level position with a salary of about $40,000, which ends up being like $37,000 take-home. And I'm waiting tables part-time, making around $20,000 to $22,000 per year. So my question, my job, I'm a paraplaner. I just got my FDQP credential at a wealth building firm. And my boss wants me to start training to become an actual financial advisor. So if I start this certification, I'm pretty sure my starting pay will be a good bit higher than what I'm making combined with my two jobs. And I'm just, I guess the main thing that worries me is that, you know, my salary is 40 000 and that if i were to uh if i were to go this route i'm not

sure if i should uh cut my current full-time job uh sorry sorry full-time if i should cut my part-time job so wait a minute when would you get the raise well if you go into this program to get certified when would you get the raise a supervisor made it sound like it would happen as soon as i earned the credential how long does it take how long does it take you to do that you know i i'm i want to say it's a couple years i think i could knock it out in less than two years okay and so if you quit the other job you're 22 000 short during that time. Exactly, which is my concern. I'm not sure because if I did quit my wedding table job, then I wouldn't really have the funds to cover all of my expenses. And on top of that, my salary by itself would kind of go over that 25%. Okay, so I'm running out of time.

What's your question then? My question is should I ask for a raise in my current position? Because I'm a pretty valuable team member at this point. Would that be appropriate? Or should I keep my part-time job and work less hours? It's always appropriate to ask for a raise if you're worth it. Now, worth it is not, I'm worth it because I like myself, like a Saturday Night Live skit. This is like you can say, this position pays this at other firms, and so I'd like to get

paid a little more. I want to add value, but the way you asked for it is what can I do to be worth more to you guys because I need to make some more, and I want to make myself more valuable to you guys. I kind of thought I was doing that, but if there's something else I can do to make myself more valuable because I want to ditch this waiting tables job so I can get in this CERT program, and I can't afford to do that the way things are now, what can I do to become more valuable to you?

And they usually will step up, don't you think? Yes, and Austin, get clarity. You don't sound like you know the date of when you would get the raise or how much the raise would be. It's like, well, I think, I assume, I want you to ask. Ask, what is the path I'm on for advancement financially and from a credential standpoint? Be sure to get clarity. Yeah, if I enter this credential program, can we go ahead and give me the raise? Yeah, get clarity there. Specifically ask.

That becomes a no-brainer. Hey, it's Kelly, associate producer for The Ramsey Show. This episode is over, but if you heard about an event, product, or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes section or head to theramseyshow.com. Thanks for listening.